Monday, June 27, 2005

 

Gaming permits offered in Baja California, Mexico

 

By Barnard R. Thompson

 

While in Mexico City in September of 2004, I received a query from a senior representative of an Indian casino in San Diego County, California.  The message read: “I received a call from Irma Auyon.  She stated … she was given the exclusive permit to find investors for a casino in Mexicali and in San Felipe (Baja California, Mexico).  She wants to meet with us, but I don’t know that she is legit or that casino gaming in Mexico is finally going to happen.  Help!”

 

My response, in part: “… yesterday I spent much of the day at the Chamber of Deputies, with a variety of people, specifically discussing casinos and the future of casinos.  The Mexican casino initiative has yet to be debated in the Chamber of Deputies, although the recess period nationwide forums have concluded and the curious intent of that work has been completed.  As well, the political parties (excepting the anti-casino posture of the small PRD delegation in Congress) have yet to take formal positions….

 

“More specifically, who is Irma Auyon…?  Second, Mexicali and/or San Felipe have little chance of being on the first-phase list for casinos, not only for sociopolitical reasons but based on requisites set forth in the draft legislation.  Regarding investors, as you know they are already lined-up and chomping-at-the-bit should the legislation be passed.  It would seem interesting to meet with Ms. Auyon, but first one might want to know more about her personally, professionally and who she (really) represents.”

 

Upon returning to San Diego, in a follow-up conversation, the Indian casino contact said that Auyon had maintained approval of casinos in Mexico was imminent.  She reportedly claimed that in addition to being tasked to find investors, she also had the full and direct support from the highest levels in the Secretariat of Government.  And without mentioning names she alluded to a probability of the secretary of that ministry, someone who would remember backers and friends, becoming the next president of Mexico.

 

After requested cursory and indirect follow-up on the Mexican side of the border, the casino representative said that a decision had been made to adopt a wait-and-see strategy regarding possible future ventures in Mexico.

 

And as it looked like an isolated incident, maybe by an over-the-top promoter rather than a pretender, the file went to the bottom of this observer’s pile.

 

Through all of this the gaming reform legislation, that includes provisions for casinos to once again operate in Mexico, stagnated away in the Mexican Chamber of Deputies.

 

Yet the Mexican government published a Regulation for the Federal Gaming and Raffles Law on September 17, 2004, that went into effect on October 14.  And with it gaming entrepreneurs, especially in the northern city of Monterrey, Nuevo León, seized upon a loophole to countermand the governing Federal Gaming and Raffles Law of 1947.

 

The lead sentence in Article 9 of the Regulation states: “Slot machines, in any of their models, will not be subject to authorization.”  With this betting centers, with slot and video machines, as well as bingo parlors and books for offsite wagering, began to spring up with different operators claiming to have the necessary permits from the Secretariat of Government.

 

Months later, on March 7, 2005, a call was received from a land developer in San Felipe, Baja California, asking about one Irma Auyon and her offer of Secretariat of Government gaming permits.

 

The pitch had changed however.  While Auyon earlier said she represented casino investment interests, she and an associate now said they were acting at the behest of the Secretariat of Government.

 

Going further, they named then Secretary Santiago Creel — whom they declared will be Mexico’s next president, as the guarantor of the expensive permits.  Permits for non-casino gaming centers with video and slot machines, plus bingo authorizations.

 

Auyon also alleged to have the blessing of the National Action Party (PAN), saying that Creel will be the party’s candidate.  Statements the San Felipe developer interpreted to mean that some of the money at least would go towards getting Creel elected president.

 

So now the story comes off the pile, for just maybe it is more than con.

 

It has been recently revealed, that since the 2004 promulgation of the Gaming Regulation and during the watch of Santiago Creel, more permits were issued and paid for than during the accumulative 60 preceding years.  Additionally, some 30 percent of the new permits went to subsidiaries of Televisa, Mexico’s media giant and a major player in getting someone elected.

 

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Barnard Thompson, a consultant, is also editor of MexiData.info.  He can be reached via e-mail at mexidata@ix.netcom.com.